Deen Dayal Jan Awas Yojna : Affordable Housing scheme of Haryana

Deen Dayal Jan Awas Yojana, an affordable housing scheme of state Government of Haryana has been launched by prime Minister Narendra Modi on 1st November on Haryana Golden Jubilee Day.

Facts :

• Deen Dayal Jan AwasYojna is an initiative of Haryana government to encourage the development of ”high density plotted colonies” in Low and Medium Potential towns of Haryana through a liberal policy framework.
• This policy aims to put a check on mushrooming of unauthorized colonies in these towns and simultaneously achieve the target of ‘Housing For All -2022’.
• Under the Deen Dayal Jan Awas Yojana, the state government aims to develop about 1 Lakh affordable homes in next three years.
• To encourage the development of such colonies by private colonizers, the rates of licence fee and external development charges have been substantially reduced, while the conversion (CLU) charges and infrastructure development charges have been waived off.
• The scheme has been approved under the Consolidated Licensing Policy 2015 of Haryana Government.
• Builders or the land owners can build housing society or colony in 2 acre to 10 acres of land.
• Government will not acquire land for the builders, but the builders have to purchase the land themselves.
• Land owners will have the freedom to sell their land at the market rate.
• The CLU will be approved within 90 days after the application.
• Farmers will also be allowed to develop housing units on their land.
• Builders will be allowed to develop colonies in 25 acres of area instead of previous minimum of 100 acres.
• 2 Lakh homes will be constructed in the state under the scheme by the year 2022.
• Under Deen Dayal Jan Awas Yojana, max allowed area of the plot would be 150 Sq.Mt.. The minimum and maximum density per acre is 240 and 400 people respectively.
• Under the scheme, the license fee for the medium-potential towns will be levied at a rate of Rs 1 lakh per acre and for Rs 10,000 per acre for low-potential towns.
• The colonizer will sell the licenced area in two phases. The latter 50% can be sold only after completion of Internal Development Work for which the colonizer is directed to mortgage 15% of saleable area.
• 10% area of licenced colony to be transferred by colonizer to the Government for development of community facilities.
• All the developers will have to complete the housing projects within 7 years after the grant of the license.
• The developers will be allowed to develop the housing units only in the residential zones of the towns as specified in the respective master development plans.
• The most attractive feature of DDJAY for benefit of prospective buyers is availability of loan up to 80% of property value from all leading institutions.
• Currently there is a significant cash component involved in land transactions and maximum loan of 60% of cheque value is available.
• This scheme makes it possible for buyers to purchase freehold, litigation free and loanable plots. First time buyers can avail interest benefits upto 2.35 lacs under Credit Linked Interest Subsidy Scheme of the government.

Analysis :

• The flats under the Deen Dayal Jan Awas Yojana will be constructed by the private housing construction firms under the supervision of state government.
• The scheme will also help reduce the increase in unauthorized colonies in the state.
• This scheme will benefit the Financial Weaker Section group of people to get homes at affordable rates.
• Even though prices have not been fixed by the government for the plots to be sold under this scheme, the authorities plan to ensure regular and adequate supply of high density plotted colonies which will ensure that the rate of plots are affordable in such colonies.
• Unlike Affordable Housing Scheme where draw of lots is conducted, allotment under this scheme shall be done on first cum first serve basis.

Payment Plan :

The payment plan is to be decided by the colonizer so it will differ from project to project. Payment is made in sync with the Internal Development Work. A standard payment plan looks like this:

By: Harman Sandhu